posted 08.40 a.m. est
pre-open comment Monday 21st October
Friday closed above Mon-Wed Hi-Lo Range indicating Buyers Active on the weekly timeframe for the second consecutive week.
Since the low on 9th October I have marked Significant Buying eight times. Buyers have been very active and so far there has been no markable Selling Response. Because the market has pushed sharply higher there has not been enough time printed at any level for a poc of any significance to emerge and therefore First Level Support remains at 1685.50.
First Level Support = 1685.50 poc
Second Level Support = 1653.50 poc
Breadth: The CP Market Timing System turned positive (from negative) for Nyse, remained positive for Nasdaq, turned positive (from neutral) for R2000, turned neutral (from negative) for UK.
Stocks>50dyma numbers: Nyse 83%, Nasdaq 75%, R2000 80%, UK 76%. Numbers >50 are considered supportive.
Sentiment: My version of the Rydex Assets Ratio ended the week at 4.03. The ratio reached as high as 5.43 at the market May high and as low as 2.15 on 07/10 (which was the lowest ratio since January 2012).
Supporting Charts
Bonds TLT: Recently the local poc migrated lower to 106.34. Time printed above this level would put the chart in a stronger price location.
Gold GLD: Remains below 134.17, the 12mn poc, in a weak price location.
Oil USO: Consolidating below 37.31, the low of the Support/Resistance band in a weak price location. I’m not interested in considering the long side of this chart until price can print time above 37.93, the maj poc.
Dollar Index: Is printing in a weak price location below 80.15. Dollar Bulls would want to see price recover this level.
EURUSD: Reached its highest level since February last week. In mid September it broke above proven 1/2R Resistance and has consolidated above that level.
